Monroe Corporation needs a machine, which will cost $100,000. Monroe will depreciate it on a straight-line basis
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Question:
Monroe Corporation needs a machine, which will cost $100,000. Monroe will depreciate it on a straight-line basis over 5 years with no resale value. The tax rate of Monroe is 28%, and its after-tax cost of capital is 11%. The machine will have anEBITof $18,000 a year for the first five years, and then an uncertain amount for the next five years, years 6 through 10. Find the minimum amount of this uncertainEBIT, which will make the purchase of this machine acceptable.(10 points)
please answer in excel format with formulas included
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